Explore The Platform Store Mode.

Double eleven ended, Fang Jianhua issued a long article in his public address, "old man: eleven this year, I recognize".

"Old man: eleven, I recognize it."

The ammunition is abundant and the team is very competitive.

It seems that what has been done has been done.

It is estimated that the partners are not convinced.

But this is not a good performance. It's a fact.

...

Look again.

The early development of a number of Internet brands.

Some comrades have left the field.

Still focusing on doing business.

The days were also tortured.

It's like fried on a pan every day.

-- old man

In a few words, Fang Jianhua has revealed the survival status of most Amoy brands.

01

Amoy brand dilemma and Yin man's change

In the process of the rise of China's independent brands, Amoy brands have developed the first generation of Internet original brand growth mode. However, by 2017, the scale of sales reached hundreds of millions to billions of dollars. Under the double squeeze of internal growth momentum and the change of external market environment, the group encountered the first floor ceiling. Very few such as three squirrels successfully completed the listing, while most of them fell into the bottleneck of transformation.

Yin man is the earliest change maker in the Amoy brand.

In 2015, Yin man began to open a line store in the two or three tier cities to join the mode, launched the "thousand city store" plan, plans to open 10000 stores in the future. In 2015, Yin man ranked ninth in the eleven women's wear sales list. Alibaba has not yet put forward "new retail". The social electronic business is in the "chaotic era" of the micro selling mask. In the next few years, the traditional clothing brands such as UNIQLO, bestseller, Pacific bird and so on become the new overlord of Tmall men's and women's wear list. In the electricity supplier market, content providers, social networking providers, short sales, short videos, and live goods have not been sung. Under the attack of the internal and external parts, the clothing category brand collectively lost its voice.

In the middle of 2019, Yin man opened to the 600 line stores, and from 1 to October, the sales of under man line increased by 22%, and in addition to very few stores, brand stores were in a profitable State.

Although it is far from the "thousand city stores" before, but in Fang Jianhua's view, the biggest test of life and death in recent years is the refinement of Yin man and completed the brand precipitation that was not taken into account in the rapid expansion of the brand. "It's hard to complain about the market outside, but it urges us to make more efforts to make products."

Next, in Fang Jianhua's plan, all the business lines of the group in 2020 will have to sprint at least 30% growth. In terms of strategy, Yin man will transform and rebuild from inside to outside, and start the brand long march with the "platform store" mode towards the "China Version MUJI".

02

Return to products and efficiency for growth

In the clothing industry, there are one billion, 10 billion and 100 billion rivers. UNIQLO, Zara, H&M and other top ranking brands in the world sell more than 100 billion annual sales models, while only a few brands of domestic clothing can cross over 10 billion on annual sales. Some brands have annual sales ranging from 1 billion to 10 billion, and most brands are in the scale of 50 million to billions.

For every growth stage, there are three main breakthroughs in Enterprises: one is a broader market coverage, and the brand with sales of over 100 billion is undoubtedly global operation; the two is a higher transformation within the scope of touchability; the conventional path is to expand the category and expand the brand; and the three is to enhance the operational efficiency of enterprises, which is a process of long-term self cultivation. The above three strategic combinations form the strategic transformation mode of enterprises, and then two products and efficiency are the core. At present, the domestic garment enterprises in the strategic transformation generally have the following directions:

Multi brand operation, users who meet different consumption levels, benchmarking and BELLE;

Enhance the ability of design and commodity planning, take the fast fashion line, match the standard Zara and H&M;

Make the foundation, facing the mass consumption, and the home of the standard UNIQLO and Hai Lan.

Expand categories, service characteristics, user groups, benchmarking MUJI.

In his transformation, he has three main considerations.

First, the era of high cost performance is coming. After many years of rapid development, China's economy has entered the shift period, which is close to the development stage of Japan in the late 70s and early 80s. The per capita GDP of the two countries has grown to about 8000 dollars, and the life of the residents has reached the level of middle-income countries. At this stage, the middle class advocate the consumption concept from high-end luxury consumption to high cost performance, mass consumption, clothing consumption will move towards simplicity and localization, and cost-effective brand will become the mainstream. The success of MUJI and UNIQLO development in Japan largely depends on high performance price ratio.

Two, we should learn from the SPA mode to enhance efficiency. In the clothing industry, Gap, Zara, H&M, UNIQLO, MUJI and other global fashion brands are adopting the independent brand professional retail mode (SPA, Speciality Retailer of Private Label Apparel). Under the SPA mode, enterprises integrate control from commodity planning, production to retail, effectively link customers and production, effectively perceive and meet the needs of consumers, and achieve rapid response to the market through integration and management of factories and supply chains. For EMMAN, who grew up on the electronic business platform, improving enterprise performance is the most important issue throughout the brand growth period.

Three is based on "cotton and hemp" gene cross category management. Despite the factors such as MUJI's adjustment and operation in China, the MUJI focuses on the integration and penetration of Japanese culture and commerce, shaping the brand image and temperament that consumers are obsessed with, and thus forming a staggering cross category business capability. In this regard, Yin man has a unique "cotton and flax" gene, with its own comfort and natural attributes, which conforms to the large economic and social environment, and returns to the simple, natural and comfortable consumption trend. Compared to multi brand operation, "cotton and linen" as a gene cross category management, enter the family "cotton and linen beautiful life" consumer market, more suitable for breaking the brand ceiling.

To sum up, there are two breakthroughs in the transformation of Yin man: one is the offline store operation mode suitable for its own development rhythm, and the other is the promotion of efficiency; the two is to open up popularity, cost-effective consumption, expand product category, and cross regional business. This issue will focus on analyzing the innovation of its business model.

03

Platform store mode to make the brand "thick"

In 2015, Yin man began laying down the line. At that time, the traditional clothing brand in China was in a large scale, and the first problem facing the market was the choice of store operation mode. On the line, brand clothing enterprises mainly adopt two modes of operation, namely, private brand professional retail mode (SPA) and franchise mode (Franchising), and the two represent heavy asset management and light assets management respectively.

SPA mode enterprises participate in the planning, manufacturing and retail of commodities, close to vertical integration, and have the characteristics of precise planning, high efficiency of supply chain, high efficiency of stores, and high efficiency of commodity distribution. At the store end, SPA mode usually uses a direct store to upgrade single store revenue, and reduces the labor cost of the store through display display and user selected shopping methods. According to the data of Everbright Securities Research Institute, the annual average income of UNIQLO single store in 2017 is about 48 million yuan, Zara is about 60 million yuan, and H&M is about 40 million yuan. In terms of labor cost, the cost of SPA mode stores is about 5%, while the labor cost of domestic brand clothing stores is generally between 10% and 20%. However, SPA is a typical heavy asset operation mode. After the benefits of the stores reach the top, growth is mainly dependent on new stores, while the outlets are slow and the capital pressure is high, so it is difficult for enterprises to achieve rapid expansion.

The franchise mode has two core advantages. First, it can get rapid expansion through low input, and the enterprise can make unified management by setting standards. The two is that the benefit of the store is closely related to the interests of franchisees, and it can fully mobilize the enthusiasm of franchisees. However, in the specific operation, subject to the standardized management capability and profit distribution mechanism of enterprises, it is easy to form a game of interests between brands and franchisees, resulting in problems such as inventory backlog, uneven level of service, confusion in price, implementation of brand strategy, and user demand feedback.

After more than four years of exploration, he combines the advantages of SPA mode and franchising mode. Through digitalization technology, he has achieved a set of "platform store" mode according to his own development rhythm. It can be summed up in five ways:

Unified brand. The standardization management of the store is based on the brand of Yan man, including the decoration style, shelf display, merchandise display, staff management, customer service and so on, forming a unified external brand image.

Unified commodity management. All line store products, such as new products, pricing, promotion, return and inter store transfers, are made intelligent decision by real-time monitoring of data center. Joining the shopkeeper is only responsible for maintaining customers, and the same efficiency is achieved in merchandise distribution with Direct stores. The sales rate reached 90% in the quarter.

Unified supply chain. Yin man unified control of supply chain, cargo rights always belong to Yin man, franchisees according to store sales to obtain the agreed proportion of commission, do not assume any inventory risk, ensure the enthusiasm of the shopkeeper, at the same time, to minimize the interests of disputes. At present, most of the annual profits of the line are kept between 150 thousand and 300 thousand, and the cost is recovered in one year to achieve a win-win situation.

Unified store digital system. Based on independent research and development data platform, based on the data link between factories, warehousing and logistics, offline stores and online shops, Online stores, through the unified retail digital system, and the industry's first use of RFID technology to achieve digital management of goods and users, including real-time inventory data, merchandise trial data, customer entry time to stay, etc., to provide data support for intelligent decision-making in Taiwan.

Unified terminal store training. Learning from the experience of UNIQLO, we attach great importance to the growth of the store owner. Many of the owners of Iran are brand fans and have a deep understanding and recognition of the concept of cotton and linen. Through a series of systematic training, emann provides a store owner with a platform for self growth and value realization, and unifying the output of community contents, enabling the store to run the community and play the fans economy. In addition, shopkeepers will timely feedback the needs of users to the design side, and combine user behavior data to keep in time response to user needs.

It can be found that, based on the platform store mode, Yin man can establish advantages in three aspects: first, the operation of light assets at the store side, and the rapid replication and popularization after the mode is matured; the two is to solve the conflict of interests between the brand and franchisee with a unified supply chain, and form a win-win binding; the three is to solve the problem of efficiency in the management of people, goods and fields with digital technology, and the backstage of the data and products can form strong support for the front desk stores. As a result, he made a trade-off between "light" and "heavy" by making "thick" brands.

04

DDI ecosystem derived from platform stores

Based on the platform store mode, Yin man uses the industrial Internet logic of "digital retail + data platform + Intelligent Manufacturing" (DDI, Digital Retailing & Data Middle-End & Intelligent Manufacturing), and opens up the enterprise boundary through the synergy of the factory side, the brand end and the retail end, forming a brand ecosystem.

Digital retailing. At the retail end, Yin man realized the online and offline "two legged" walk through e-commerce and 600 platform stores, and realized the unified management of brands, commodities and supply chain through the franchisee commission system, and established a sensitive feedback between users and users. Next, based on cotton and hemp genes, Yin man will promote the family life scene based cloth products cross category management, and create a living space for cotton and hemp.

Data center. At the brand end, through the independent research and development data platform, EMMAN realizes the intelligent decision-making of fabric development, new product design, product planning, inventory management, activity promotion, return to order replenishment and so on. A closed loop of "user demand product design flexible manufacturing warehousing logistics online and offline retail user demand iteration" is established.

Intelligent manufacturing. At the manufacturing end, in 2018, Jiangxi invested 140 thousand square meters of intelligent manufacturing industrial base in Yudu, China, introducing the world's leading production facilities and equipment, and connecting the data connection between intelligent manufacturing and data platform and digital retail. At the same time, Yin man can export the practical experience of the intelligent factory to the upstream plant partners, so that the suppliers can achieve the same efficiency and quality.

Conclusion:

From Amoy brand growth to sleepy to seek incremental online try "two legs" walk, Yin man in groping in the formation of a suitable for their own pace of development of the "platform store" mode, and the industrial Internet DDI logic, form the prototype of the brand's future development mode. The breakthrough of a brand reflects the collapse of countless travellers, "salutes the strikers and goes with innovators" and expects the birth of China's 100 billion clothing brand.